LPG Crisis: Govt Fixes 20% Supply Quota For Hotels, Restaurants Amid Gas Shortage

India’s government has fixed a 20 percent commercial LPG quota for hotels and restaurants amid a global gas supply crisis. The move aims to ensure minimum fuel availability so kitchens continue operating while authorities work on strengthening supply chains and exploring additional gas supply options for the hospitality sector.

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FPJ Web Desk Updated: Friday, March 13, 2026, 05:02 PM IST
India’s government has fixed a 20% commercial LPG quota for hotels and restaurants amid a global gas supply crisis. | Symbolic Image |

India’s government has fixed a 20% commercial LPG quota for hotels and restaurants amid a global gas supply crisis. | Symbolic Image |

New Delhi: The global gas supply crisis is now beginning to impact India’s hotel and restaurant sector. Concerns over the availability and rising prices of commercial LPG have increased, prompting the government to take immediate steps to manage the situation.

To ensure that businesses continue to operate despite the shortage, the government has announced that hotels, restaurants and other commercial establishments will receive about 20% of their average monthly commercial LPG requirement. This arrangement has come into effect immediately.

The main objective of this move is to ensure that kitchens in hotels and restaurants do not completely shut down even if the supply of LPG becomes tight. Commercial LPG is one of the most important fuels used by the hospitality industry, and thousands of kitchens depend on it every day to prepare food for millions of people.

Officials believe that any major disruption in LPG supply could directly affect the tourism and hospitality sectors. Hotels, restaurants and catering services rely heavily on commercial LPG for daily cooking activities. If the gas supply stops or reduces significantly, businesses could face serious operational challenges.

Keeping this risk in mind, the government held discussions with relevant ministries to review the situation. During the meeting, officials agreed that immediate relief measures were necessary to prevent major disruption in the sector.

The government has also stated that it is exploring options to provide additional gas supplies in the future. Authorities are considering ways to strengthen the supply chain and improve the distribution of LPG across the country.

In this process, the Ministry of Petroleum and Natural Gas and the Ministry of Tourism will work closely together. Both ministries will remain in regular contact with industry associations and business operators to understand the challenges faced on the ground and address them quickly.

Experts say that the tourism and hospitality sector plays an important role in India’s economy. The sector provides employment to millions of people and supports several related industries. Since hotels and restaurants depend heavily on LPG for daily operations, a prolonged disruption in supply could affect tourism and business activity.

For now, the government believes that the 20% LPG quota system will ensure minimum essential supply for hotels and restaurants. This temporary arrangement is expected to support the sector until more stable supply options are arranged. Authorities will continue to monitor the situation and may introduce additional measures if required.

Published on: Friday, March 13, 2026, 05:02 PM IST

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